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Break-even trade after after reaching a maximum favorable excursion of 30 pips. This is a typical yo-yo trade, they move in your favor and then revisit your entry point later. It should be interesting to study the subsequent behavior of such trades after that type of movement...

On the 5 min, AUD/CHF and EUR/NZD were negatively correlated (minus 95.5%), during the last 200 periods On the 1H, AUD/CHF and EUR/NZD were also negatively correlated (minus 72.6%), during the last 200 periods So being long the 2 pairs at the same time was a stupid move (done for educational...

My system experiences 150 to 200 pip magnitude drawdowns about 3.4 times a year, on average. That's part of the business, I cannot control what the market is doing, I can only manage my losses and keep them under control.

Trade has been abandoned at 8820, 15 pip loss. Buy EUR/NZD at 1.5865 on a limit, this a re-entry order.

Yes, but don't forget that the "dumb" money is usually wrong but only at the end of an extended move...

No, but spreads will only eat a tiny portion of your profits in the long run, if you are a successful long-term trader. Anyway, you want "transparency"? Then trade currency futures on a centralized exchange like CME, where is the problem? Also note that it is possible to trade directly on the...

I left my long EUR/NZD and long AUD/CHF positions open for almost 3 hours (on purpose) and yet nobody said : "Yo, Xelite777, do you know how stupid your 2 positions are? You initiated two long positions on 2 negatively correlated pairs, you fool!" Come on guys, you are sleeping or what? :p...

The size of the spread matters if you trade frequently (scalp or day trades). Otherwise your FX broker could triple the spread and it wouldn't matter a bit in the long run, if you trade only once or twice a month or less.

Trade currency futures at CME then, if you believe FX brokers are eating your lunch. It's liquid enough, unless you are a "whale" and like to trade 200 to 1000 contracts or more per position.

Yes, but I double the potential reward too, it works both way. Anyway, EUR/NZD position has now been closed at the same price as entry price (no loss, no gain). Waiting for more confirmation to re-enter long position...

FXCM does have a No Dealing Desk (NDD) service for Forex transactions, on top of the dealing desk model.

Not sure I quite understand your comment, Boskop. All I am saying is that I am buying 2 units of EUR/NZD, instead of the usual 1 unit.

Don't feel obligated to bash FXCM or other Forex brokers just to promote IB ... (Nothing against IB by the way)

Bought AUD/CHF at 0.8335, 32 pip stop.

Bought EUR/NZD at 1.5863, 52 pip stop. This is a double-risk trade, meaning each pip is now worth 2 pips, win or lose. In other words, if the stop is triggered for example, then real loss = 104 pips (2 times 52)

Yes yes, I know, some unscrupulous Forex brokers use every trick in the book to basically steal your money. I buy and sell currencies at airports currency exchange booths, of course! :D Seriously, does it really matter who my FX broker is?

Well, they are basically all the same, you just need to stick with the Forex brokers who are registered with the NFA.

Yes you are right again, prices at the supermarket and elsewhere are constantly decreasing. At this rate, food will be given for free very soon. And then, at some point in time, retailers will simply PAY US to take their merchandise.

This trade was closed at break-even. The price went as high as 0.86951 (more than 25 pips higher) before the reversal. As previously noted, my stops are automatically moved to break-even after a 25 pip move in my favor, or when the currency has already moved more than 25 pip without triggering...

Possible flag on the EUR/NZD (15 min). This is usually a bullish formation...